Japanese company Mitsui & Co has signed an agreement to form a joint venture (JV) with BW Group in order to establish joint ownership of the floating storage and regasification unit (FSRU) ‘BW Integrity’, which is set to operate in Pakistan.
The transaction will see Mitsui & Co acquire a 49% stake in the JV and is expected to conclude after the completion of payment for the purchase.
The deal represents Mitsui’s first FSRU project. The newly formed JV is expected to lease the BW Integrity to PGP Consortium (PGPC) under a long-term agreement.
PGPC will use the vessel to provide LNG regasification services to state-owned company Pakistan LNG Terminals.
Pakistan began importing LNG in 2015 in order to fulfil the growing domestic demand for natural gas as a result of depleting indigenous gas sources.
The demand is anticipated to continue growing consistently and reach 20 million tonnes per year by 2022.
BW Integrity will operate as the country’s second LNG-receiving facility and is expected to hold significant importance.
BW Group owns a diversified fleet comprising more than 150 vessels, including LNG and Lpg carriers, floating gas infrastructure, product tankers, FPSOs, dry bulkers and chemical tankers.
The project represents BW’s second FSRU project.
BW Integrity’s sister vessel, ‘BW Singapore’, is currently operating in Egypt as part of a five-year charter.